factual

What deductions are made before sharing the placement fee between All Team agencies?

All_Team Franchise · 2025 FDD

Answer from 2025 FDD Document

If a Candidate who is hired by a Placement Customer is placed with the assistance of another All Team agency, you will equally share the placement fee with the party who assisted in the placement, after first deducting the amounts due to us under the Franchise Agreement. Likewise, if you assist another All Team agency in placing a Candidate, the other All Team agency will be required to share the placement fee with you, after first deducting the amounts due to us under the Franchise Agreement.

Source: Item 12 — TERRITORY (FDD pages 23–26)

What This Means (2025 FDD)

According to All Team's 2025 Franchise Disclosure Document, when a candidate is placed with the assistance of another All Team agency, the placement fee is shared equally between the agencies involved. However, before this split occurs, the amounts due to All Team under the Franchise Agreement are deducted. This means that All Team receives its share first, and then the remaining amount is divided between the agencies that collaborated on the placement.

This arrangement ensures that All Team's franchise fees and other obligations are prioritized before the agencies share the revenue. For a prospective franchisee, this highlights the importance of understanding the full scope of fees payable to All Team, as these will directly impact the amount of revenue available to be shared with other agencies in collaborative placements. It also incentivizes franchisees to work together, as they can expand their reach and fill more positions by leveraging the network of All Team agencies.

It is important for franchisees to clarify with All Team what specific deductions are covered under "amounts due to us under the Franchise Agreement." This could include royalties, marketing fees, or other ongoing charges. Understanding these deductions is crucial for accurately forecasting potential earnings from collaborative placements and assessing the overall profitability of the franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.